EMPLOYEE BENEFITS
Rapid increase in use of flex schemes
The much-hyped growth in the use of flexible benefit schemes appears to have finally begun. The results from a new survey by the Industrial Society suggest that although flex remains a minority pursuit among UK companies, its take-up has doubled since 1996.
One in ten respondents canvassed by the Industrial Society operate a flexible benefits system, and of these no fewer than 18% have been introduced over the past year.
Key findings of Industrial Society research
Why introduce flex? The data gathered by the Industrial Society offers some fascinating detail on why organisations introduce flex. The most frequently reported reason was to improve staff retention (cited by 27% of survey participants), followed by competitive pressures (16%) and recognition of individual requirements (16%).
Who is covered? Flexible benefit schemes are no longer confined to just senior managers. They have cascaded down through the organisation hierarchy. In 77% of organisations flex covered the entire workforce, while 19% of respondents said their scheme covered only middle managers and above.
Which benefits? Any of the traditional elements of benefits packages can be provided through flex. According to the Industrial Society, the most popular benefits in flex schemes are pensions, life insurance, company cars and healthcare.
What about communications? One of the most important aspects of effective flex implementation is clear communication, says the Industrial Society. The most common methods of communication among survey respondents were noticeboards/in-house publications (used by 18% of respondents), followed by brochures (13%) and intranets (9%).
What are the main drawbacks? Organisations planning to introduce flex face running across some stumbling blocks. Costly administration was the most often cited drawback in the Industrial Society research, mentioned by 55% of respondents.
Survey details
Title: Flexible benefits , Managing Best Practice, no. 75, September 2000.
Methodology: questionnaires sent in June 2000 to 5,600 HR specialists drawn from the Industrial Society’ s database. The report includes case studies and best practice tips from Alcatel Telecom Ltd, Cable & Wireless, Cadbury Ltd, EMAP, PricewaterhouseCoopers and Spring Group plc.
Sample size: a total of 278 replies were received — a response rate of 5%.
Business sectors: the survey is broadly representative of regions, sectors and size, but is not a scientifically structured sample of the economy .
Availability: contact the Industrial Society on tel: 0870 400 1000.
Want to know more?
The Industrial Society is a wholly independent, not-for profit body with over 10,000 member organisations, and holds Royal Charter status. Its members include companies of every size, from every sector of the economy, along with public sector organisations, charities and trade unions.
Managing Best Practice is the Industrial Society’ s monthly report on achieving excellence in key areas of managing people .
To find out more . . . www.indsoc.co.uk